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THE CORPORATION, WE EXPECT THE FULL COSTS OF THE EXERCISE TO BE RECOVERED BY NOT LATER THAN THE FOURTH YEAR.
10. ON 8 OCTOBER 1991 EXCO APPROVED IN PRINCIPLE OUR PROPOSALS FOR DISESTABLISHING RTHK AND THE ORGANIZATIONAL STRUCTURE AND REMUNERATION PACKAGE PROPOSED FOR THE CORPORATION BUT DIRECTED THAT THE CHINESE NOW BE CONSULTED ON THE EXERCISE. EXCO ALSO APPROVED A DRAFT BILL WHICH PROVIDES FOR THE ESTABLISHMENT OF THE CORPORATION BUT DID NOT FIX A DATE FOR INTRODUCING THE BILL INTO
LEGCO. EXCO WISHES TO BE CONSULTED AGAIN AFTER WE HAVE OBTAINED
THE CHINESE RESPONSE.
11.
OUR TIMETABLE, ASSUMING THE BEST, IS TO PUT THE BILL TO LEGCO AND APPOINT A PROVISIONAL BOARD IN LATE JANUARY 1992, WITH THE FULL BOARD IN PLACE IN MARCH 192 AFTER ENACTMENT OF THE BILL
AND TO COMPLETE DISESTABLISHMENT OF RTHK AND HAVE THE CORPORATION OPERATION BY OCTOBER 1992.
12.
SINCE THIS IS A SIGNIFICANT CHANGE OF GOVERNMENT STRUCTURE WE THINK WE SHALL HAVE TO EXPLAIN OUR INTENTIONS TO THE CHINESE
(WE UNDERTOOK AT JLG XI IN 1988 TO BRIEF THEM ON MAJOR POLICY INITIATIVES AND IMPORTANT MATTERS STRADDLING 1997). THERE ARE OBVIOUSLY GREAT SENSITIVITIES INVOLVED FOR THEM IN THE BROADCASTING AND MEDIA AREAS GENERALLY, AS WELL AS THE GENERAL PRIVATISATION QUESTION. THERE IS LIKELY TO BE SUSPICION BECAUSE WE ARE CHANGING ONLY FIVE YEARS BEFORE 1997 A STRUCTURE WHICH HAS REMAINED UNCHANGED SINCE 1954.
13. UKREP JLG PROPOSES AS A FIRST STAGE TO BRIEF HIS OPPOSITE
NUMBERS INFORMALLY ON WHAT IS PROPOSED AND TO ASK WHETHER THE CHINESE SIDE WISH TO BE BRIEF MORE FULLY. IT SEEMS LIKELY THAT THEY WILL ASK FOR THIS, AND WE SHALL THEN ARRANGE A FORMAL BRIEFING. THE RISK OF COURSE IS THAT THE CHINESE WILL ASK FOR A FORMAL CONSULTATION THROUGH THE JLG PROCESS. THEY WOULD NO DOUBT BASE THEMSELVES ON THE SMOOTH TRANSITION PROVISIONS IN THE JLG TERMS OF REFERENCE. IF THEY DO, IT WILL BE HARD TO AVOID IT, THOUGH WE SHOULD MUCH PREFER TO SO AVOID. HOWEVER WE THINK THAT APPROACHING THE MATTER FROM A WILLINGNESS TO BE OPEN ABOUT IT IS MORE LIKELY TO PRODUCE A CONSTRUCTIVE DISCUSSION THAN WAITING FOR THEM TO RAISE IT WITH US.
14.
WE SHALL OF COURSE PRESENT THE PROPOSALS FROM THE POINT OF
VIEW OF THE COMMERCIAL AND ECONOMIC EFFECTIVENESS OF THE ORGANIZATION, WHERE THERE IS A GOOD CASE TO BE MADE. WE SHALL
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